Applying for a 2nd mortgage? Beware of this pitfall!

Many 2nd mortgage lenders often tempt their clients with enticing low rates. When you walk into their office, you are subject to a credit check – “just to be safe!”. If they deem your credit score isn’t up to their standard, the mortgage companies will revoke their “low interest rate” offer.

Sounds reasonable – right? No…it’s not all right!

Buyer beware!

When one of the 2nd mortgage lenders declines your application, you will likely move to the next one. And if you fail to get what you want from them, you move on. Unknown to you though, each time that one of those lenders does a credit check on you, it impacts your credit rating. And most mortgage companies don’t make you aware of that!

Even though you didn’t take on a 2nd mortgage from that company, the credit rating agency deems the inquiry made by successive lenders as a negative. So, what’s the solution? The answer: Work with mortgage brokers!

Because of the way brokers work, discussing client requirements once, qualifying them once, and doing credit checks once; there is just a single inquiry request for your credit history registered in the credit rating agencies database.

Once they do their diligence on your credit rating, private mortgage lenders don’t need to make multiple inquiries about your credit standing. They use the information from that single inquiry to discuss your request for 2nd mortgage loans with multiple lenders. With just a single credit inquiry on your record, your credit score is not impacted as much as it would be when you meet multiple banks and mortgage corporations to discuss your loan.

Get professional advice

Unlike the large banks or big mortgage corporations, Mortgage Genie employs a team of mortgage advisors – not sales people. Working with Ontario’s premier private mortgage lenders, clients will feel no pressure to buy a specific product or enter into a specific service agreement. Professionals on the team offer advice on 2nd mortgage loans as well as other products available from multiple lenders. It’s then up to you, the client, to choose what’s right for you.

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